REPORT 


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RAILROAD  COMPANY. 


January  1st,  1857. 


NEW  YORK : 

WM.  C.  BRYANT  A  00.,  PRINTERS,  41  NASSAU  ST.,  COR.  LIBERTY. 


1  8  5  7  . 


oarir  of  Jlimtors  for  1856-7. 


F.  CORWIN”,  Wilmington,  Ohio, 

D.  McDEAN,  Washington,  Ohio, 

—  TALLMADGE,  Lancaster,  Ohio, 

M.  A.  DAUGHERTY,  Lancaster,  Ohio, 
JOHN"  A.  ADAMS,  Zanesville,  Ohio, 

E.  GEST,  Cincinnati,  Ohio, 

• - One  Vacancy. 


— - 

PRESIDENT  AND  SUPERINTENDENT, 
E.  GEST. 

TREASURER* 

J.  RADEBAUGH. 

ASSISTANT  SUPERINTENDENT, 

W.  W.  BAGLEY. 

CASIIIEJt, 

JOSEPH  J.  GEST. 

ROAD  MASTER, 

JOEL  T.  HAM. 

MASTER  MACHINIST, 

E.  PEIRCE. 


'  V. 


PRINCIPAL,  BUSINESS  OFFICE 


CINCINNATI,  OHIO, 


A 


New  York,  December  1st,  1856. 

To  E.  Gest,  Esq., 

President  of  the  Cincinnati,  Wilmington  and  Zanesville 
Railroad  Company: 

Dear  Sir, — The  non-payment  of  interest  on  the  bonds  of  your 
Company  for  the  six  months  ending  Nov.  1st,  1856,  leads  me 
to  ask  of  you,  as  President,  a  detailed  and  explicit  statement  of 
the  affairs  of  the  Company,  both  since  your  Presidency  and 
before,  (so  far  as  you  have  been  able  to  ascertain  the  same,)  and 
the  condition  and  prospects  of  the  road,  so  that  I  may  answer 
the  many  enquiries  of  the  bondholders,  and  that  they  may  act 
with  discretion  in  the  premises. 

Truly  yours, 

Geo.  S.  Coe, 
Trustee. 

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https://archive.org/details/reportjanuary1st00cinc 


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if  %  Cincinnati,  ®i:mmgtoit  auir  gnusbiUe 

RAILROAD  COMPANY, 

Cincinnati,  January  1st,  1857. 

To  the  Bondholders ,  Creditors  and  Stockholders  of  the  Cincin¬ 
nati^  Wilmington  and  Zanesville  Railroad  Company  : 

The  immediate  and  nearly  total  suspension  of  the  payment  of 

interest  and  principal  on  the  floating  debt  of  the  Company 

that  followed  my  acceptance,  on  July  24th  last,  of  the  position 

of  President  and  Superintendent, — the  failure  on  the  1st  of 

November  to  pay  the  coupons  on  that  day  due,— the  expiration 

of  the  sixty  days’  grace,  allowed  by  terms  of  mortgage,  before 

forfeiture,— with  the  fact  that  the  report  dated  May  1st,  1854 

is  the  only  one  ever  published,— indicate  the  necessity  for 

anticipating  the  regular  annual  report  of  the  Board  of  Directors 
to  the  stockholders.  sectors 

INCEPTION. 

The  Company  derived  its  title  and  corporate  powers  by 
special  act  of  the  Ohio  Legislature,  dated  February  4th,  1851  • 
which  act  refers  to  and  makes  the  General  Railroad  Law  of 
that  State,  dated  February  11th,  1848,  with  the  several  amenda¬ 
tory  acts  thereto,  the  fundamental  law  of  the  corporation,  and 
invests  it  with  all  the  rights,  privileges  and  franchises  necessary 
for  the  construction,  maintenance  and  operating  of  a  railroad 
from  the  city  of  Cincinnati  to  the  city  of  Zanesville,  in  said 
Ntate.  In  May  of  the  same  year  the  Company  was  organized. 


WHEN  COMMENCED. 

In  November,  1851,  the  section  of  the  road,  between  the  town 
o  Morrow,  on  the  Little  Miami  Railroad,  thirty-six  miles  dis¬ 
tant,  by  said  railroad,  from  Cincinnati,  to  the  city  of  Lancaster 


4 


(eighty-nine  miles),  was  placed  under  contract ;  and  in  January, 
1853,  the  section  between  Lancaster  and  Zanesville  (42  miles) 
was  also  let. 

WHEN  OPENED. 

On  the  11th  of  August,  1853,  the  section  between  Morrow  and 
Wilmington  (twenty  miles)  was  opened  for  traffic ;  on  the  24th 
of  INovember,  for  the  further  distance  of  twenty  miles  to  Wash¬ 
ington  ;  on  the  14th  of  March,  1854,  to  Circleville ;  on  the 
11  tli  of  April,  to  Lancaster  ;  and  about  the  1st  of  May,  1856,  to 
the  junction  with  the  Ohio  Central  Load,  in  Zanesville.  In  all, 
13 If  miles.  On  the  section  between  Morrow  and  the  city 
(thirty  miles),  nothing  had  been  done,  nor  had  any  efforts  been 
made  to  provide  for  its  construction,  until  after  the  opening  of 
the  road  to  Zanesville. 


ALIGNMENT. 

So  far  as  it  is  possible  to  judge  by  merely  riding  over  the 
road,  and  without  the  maps  made  from  the  preliminary  surveys, 
the  line  appears  to  be  well  located ;  and  for  all  practical  rail¬ 
road  purposes,  may  be  said  to  be  the  same  as  a  right  line. 
Eighty-eight  per  cent,  of  its  length  is  made  up  of  tangents.  On 
the  remaining  twelve  per  cent,  there  are  no  objectionable 
curves. 

GRADES. 

As  to  grades,  it  is  equally  favorable ;  unless  the  two  grades 
of  fifty-five  feet  per  mile,  which  occur  on  the  twenty-one  mile 
section,  between  Circleville  and  Lancaster,  are  considered 
objectionable.  Should  they  prove  so,  in  the  future  working  of 
the  road,  they  are  so  situated,  that  by  using  an  assistant  engine, 
trains  loaded  to  the  maximum,  for  the  other  sections  of  the  road, 
can  be  made  to  pass  them  without  detention,  and  at  a  small 
additional  expense. 

ROAD-BED. 

The  road-bed  was  intended  to  be  graded  fifteen  feet  wide  on 
embankments,  and  twenty  feet  in  excavatiors,  at  sub-grade — the 
slopes  of  banks  and  excavations  being  one  and  a  half  feet  base 
to  one  vertical.  Generally  these  dimensions  were  adhered  to, 


5 


and  the  road-bed  finished  accordingly  ;  excepting  immediately 
at  the  approaches  of  some  of  the  bridges,  where  trestling  was 
resorted  to,  and  at  a  few  of  the  heavier  cuts  on  the  eastern 
twenty  miles  of  the  road,  where  the  slopes  were  left  standing, 
and  some  two  or  three  places  in  embankments  where  the  same 
was  not  filled  up  to  grade.  From  the  steepness  of  the  slope 
thus  adopted,  a  few  slips  have  occurred ;  and  where  the  em¬ 
bankments  are  high,  the  width  at  top  has  been  reduced  by  abra¬ 
sion  so  much,  that  more  or  less  widening  of  these  banks  will  be 
required  during  the  coming  two  years.  With  the  exceptions 
stated  and  a  moderate  amount  of  additional  side-track  grading, 
the  grading  of  the  road-bed  from  Morrow  to  Zanesville  may  be 
said  to  be  complete.  Five  thousand  dollars  expended  during 
the  next  three  years,  together  with  that  which  will  be  necessa¬ 
rily  done  by  the  ditching  train  during  the  same  period,  will 
complete  the  grading  of  the  road-bed. 

CULVERTS  AND  BRIDGES. 

Most  of  the  small  water  passages  are  of  stone,  and,  with  two 
or  three  exceptions,  are  in  good  order.  There  are  fifty -five  regu¬ 
lar  truss  bridges  of  wood — How’s  plan.  Of  these,  seven 
are  deck,  thirty-five  through,  twelve  low  truss,  and  one  draw. 
Their  aggregate  length  is  seven  thousand  two  hundred  and 
seventy-seven  feet.  There  are  also  fifty-six  small  girder  bridges, 
measuring  in  length  eighteen  hundred  and  fifty-eight  feet, 
and  varying  in  span  from  five  to  thirty  feet.  Nine  of  the 
truss  bridges,  and  forty  six  of  the  girder,  are  supported  with 
wooden  bents.  These  bents  should  be  replaced  with  stone 
abutments  and  piers,  as  they  fail,  and  will  require  about  forty- 
five  hundred  perches  of  masonry,  at  a  cost  of  $24,500.  This 
expenditure  will  extend  through  the  next  five  years. 

The  superstructure  of  all  the  bridges  may  be  said  to  be  in  a 
fair  average  condition,  and  Will  require  only  the  ordinary  re¬ 
pairs  incident  to  similar  structures. 

There  are  wanted  three  or  four  sluice-ways  ;  also  some  extra 
ditching  alongside  of  the  road,  to  prevent  future  overflow 
of  the  track  and  inundation  of  adjoining  lands.  $5,000  will 
cover  this  item. 


6 


TRESTLE  WORK. 

There  are  six  hundred  and  fifty-nine  lineal  feet  of  trestle 
work  distributed  at  nineteen  points  ;  generally,  however,  form¬ 
ing  approaches  to  bridges.  They  should  be  replaced  with  earth 
banks,  as  they  decay;  to  do  which  will  require  an  expenditure 
of  $4,000. 

BALLAST. 

With  the  exception  of  twenty  miles,  the  road-bed  is  ballasted 
in  whole  or  part.  The  amount  of  ballast  yet  required  to  com¬ 
plete  the  entire  length  and  replace  ballast  spoiled  by  the  track¬ 
men,  or  of  an  improper  character,  is  estimated  to  be  equal  to 
one-half  of  the  entire  amount  on  the  whole  road  when  com¬ 
pleted,  and  will  require  an  expenditure  in  the  next  two  years 
of  $31,200. 


TIES 

Are  generally  of  white  and  burr  oak ;  will  average  two  and 
a  half  years  old ;  and  the  time  is  fast  approaching  when  con¬ 
stant  regular  annual  renewals  will  be  required. 

CHAIRS 

Are  of  wrought  iron,  of  the  ordinary  weight  and  pattern. 

IRON 

Is  of  the  ordinary  American  pattern  (inverted  T),  weighing 
60  lbs.  to  the  yard.  The  larger  portion  is  of  European  manu¬ 
facture,  and  has  proved  of  superior  quality.  That  on  the  42 
miles  east  of  Lancaster  is  of  American  manufacture.  This  not 
having  been  a  great  while  in  use,  its  quality  cannot  be  so 
well  judged. 

SIDE-TRACKS 

Are  sufficiently  numerous,  but,  unfortunately,  are  either  not 
long  enough,  in  the  wrong  place,  or  badly  arranged.  They  re¬ 
quire  more  or  less  shifting,  and  should  he  forthwith  increased 
in  length  and  connected  at  both  ends  (many  of  them  being 
spurs.)  To  do  this  work  will  require  two  hundred  and  fifty  tons 
of  iron,  which,  with  the  other  fixtures,  grading  and  labor,  will 
cost  about  $22,000. 


7 


RIGHTS  OF  WAT. 

As  a  general  rule,  the  right  of  way  has  been  settled.  I  know 
of  only  a  few  cases  which  remain  unsettled.  From  what  I  know 
of  the  settlements  so  far  made,  there  are  a  number  that  will 
have  to  be  re-adjusted  before  the  line  is  fenced.  The  amount 
that  will  yet  be  required  to  adjust  these  rights  of  way  I  estimate 
at  $15,000. 

FENCING  AND  CATTLE  GUARDS. 

Only  a  portion  of  the  road  is  fenced,  and  this  partly  at  the 
expense  of  the  Company  and  partly  of  the  land  owners.  I  con¬ 
sider  the  amount  yet  to  be  done,  equal  to  one  line  of  the  entire 
length  of  the  road,  and  that  it  will  cost  the  Company,  eventual¬ 
ly,  about  $42,000.  To  this  sum  must  be  added  about  $3,000  for 
cattle  guards  and  joining  fences. 

REAL  ESTATE. 

The  Company  own  no  surplus  real  estate  of  any  amount ; 
what  there  is,  is  mostly  confined  to  odd  pieces  about  present 
depots  and  will  be  absorbed,  in  exchanging  for  other  more 
available  ground  at  same  places. 

FREIGHT  STATIONS. 

The  Company  own  frame  freight-houses  at  Wilmington,  Wash¬ 
ington,  Circleville  and  Lancaster,  of  sufficient  capacity  for  imme¬ 
diate  purposes.  At  several  minor  stations  there  are  private  ware¬ 
houses  that  will  answer  for  the  present.  At  Zanesville  a  freight- 
house  should  be  provided  forthwith,  as  it  is  a  large  place  with  a 
heavy  trade ;  and  being  the  junction  with  the  Ohio  Central  Road, 
the  business  is,  to  a  greater  or  less  extent,  influenced  by  the 
facilities  for  its  accommodation.  For  the  want  of  a  building  and 
grounds,  all  freights  are  received  and  discharged  in  the  street, 
and  during  wet  weather  the  business  is  totally  suspended.  The 
coat  of  the  freight  and  passenger  stations,  with  the  grounds,  at 
that  place,  will  be  about  $20,000. 

But  little  money  need  be  expended  at  the  subordinate  sta¬ 
tions,  for  building,  at  present.  The  ground  and  the  buildings 
can  generally  be  secured  upon  favorable  terms  from  individu¬ 
als,  subject  to  the  control  of  the  Company. 


8 


WATER  STATIONS. 

There  are  fourteen  stations  on  the  road,  and  three  more 
wanted.  They  are  all  frame,  and  all  are  supplied  with  water 
by  pumping.  From  examinations  recently  made,  we  think  that 
water  from  springs  can  be  secured  and  the  expense  of  pumping 
dispensed  with,  excepting  at  five  stations.  The  present  stations 
are  only  in  a  passable  condition  ;  but  it  is  believed  that  the  sav- 
ing  by  resorting  to  springs,  within  the  next  eighteen  months, 
will  pay  the  expense  of  re-arranging  and  placing  them  in  good 
order. 

WOOD  SHEDS. 

Of  these  buildings  there  are  none.  Their  number,  size  and 
cost,  will  depend  upon  whether  coal-burning  engines  are  adopt¬ 
ed  generally  on  the  road,  or  not ;  $  1 2,000  will  probably  cover 
their  cost. 

TELEGRAPH. 

The  Company  are  now  in  possession  of  a  telegraph  ;  but  it 
is  believed  that  its  interests  will  be  largely  promoted  by  secur¬ 
ing  its  exclusive  control.  For  this  object,  negotiations  are  now 
pending. 

MACHINE  SHOP. 

The  buildings  belonging  to  this  department  are  totally  inade¬ 
quate  to  the  wants ,  as  are  also  the  tools ;  and  being  where  there 
are  none  of  the  essential  facilities  for  procuring  materials,  or 
other  supplies,  or  for  the  accommodation  of  the  men,  the 
amount  of  work  that  can  be  done  at  these  shops  is  limited, 
and  attended  with  increased  and  unnecessary  cost.  The  Com¬ 
pany,  therefore,  decided  to  move  them  to  Lancaster,  where  a 
shop  63x120  feet,  and  round-house,  of  six  stalls,  with  other 
buildings,  are  in  progress  of  erection,  and  expected  to  be  ready 
for  use  by  the  1st  of  March — the  citizens  of  Lancaster  having 
contributed  $4,000  towards  their  construction.  This  is  where 
they  should  have  been  located  originally,  being  a  large  and 
flourishing  county  seat,  sufficiently  attractive  to  induce  men  of 
families  to  seek  employment  in  our  shops  ;  and  being  also  in 
the  immediate  vicinity  of  the  coal-field,  at  the  junction  with 
the  Hocking  Canal,  and  where  the  Ohio  extension  of  the  Balti- 


9 


more  and  Ohio  Road,  via  Parkersburg  and  the  Hocking  Talley, 
will  intersect  our  road;  also,  the  proper  distance  from  Cincin¬ 
nati  (120  miles)  and  midway  between  that  city  and  Bellaire; 
and  a  proper  dividing  point,  if  our  road  and  the  Central  Ohio 
should  be  worked  in  common  ;  and  equally  favorable,  should  we 
run  as  one  road  to  Pittsburgh.  Within  the  next  twelve  months 
$10,000  should  be  expended  in  additional  buildings  and  tools 
for  these  shops. 

ENGINE-HOUSES. 

There  is  only  one  on  the  road  ;  it  is  situated  at  Morrow,  and 
built  of  brick  ;  capacity,  four  stalls,  of  which  the  Little  Miami 
Company  own  the  undivided  half.  Until  the  road  is  built  into 
the  city,  this  building  will  be  inadequate  to  the  wants  of  both 
Companies,  as  we  frequently  have  four  engines  lying  over  at 
that  puint ;  and  in  case  the  Miami  Road  have  engines  there  also, 
one  or  more  of  ours  must  remain  unsheltered.  We  are  now 
building,  at  Putnam,  and  have  nearly  completed,  one  with  six 
stalls,  of  wood,  which,  with  the  recently  erected  carpenter  shop, 
and  blacksmith  shop,  with  two  fires,  at  the  same  place,  and 
with  the  new  shops  and  engine-house,  at  Lancaster,  will  add 
much  to  the  facilities  for  protecting  and  repairing  the  rolling 
stock. 

PASSENGER  STATIONS. 

The  Company  own  the  undivided  half  of  the  Morrow  Station  ; 
it  is  a  substantial  frame  building,  built  expressly  for  the  pur¬ 
pose,  at  a  cost  to  both  Companies  of  about  $7,000.  The  Company 
own  no  other  stations  of  this  kind  ;  one  is  wanted  at  Zanes¬ 
ville,  at  once.  Stations  should  also  be  built  at  Wilmington, 
Washington,  Circleville,  Lancaster  and  Lexington,  so  soon  as 
the  means  of  the  Company  will  justify.  At  the  other  stations, 
the  freight-houses,  when  built,  may  be  made  to  answer  for  some 
years. 


LOCOMOTIVES. 

These  are  sixteen  in  number,  and  the  following  table  indicates  their  names  and  condition : 


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11 


The  condition  of  the  machinery  is  not  such  as  would  be  de¬ 
sired  for  service. 

The  present  master  machinist,  in  taking  charge  of  the  shops 
on  1st  of  September,  reported  only  three  engines  in  order,  two 
of  which  were  passenger  engines,  the  other  a  second  class  freight 
engine,  and  that  $17,600  would  be  required  to  repair  them. 

The  three  first  class  freight  engines  were  so  run  down,  that 
they  had  to  be  sent  to  Niles  &  Co.,  Cincinnati,  for  repairs.  One 
was  replaced  on  the  road  about  the  1st  of  December,  but  from 
causes  beyond  control,  has  failed  two  or  three  times,  and  con¬ 
sequently  done  but  little  service,  and  is  again  in  the  shop.  The 
Sciota  is  expected  to  be  on  the  track  this  week.  To  the  other 
(the  Zanesville)  nothing  has  yet  been  done,  owing  to  the  insuf¬ 
ficiency  of  our  own  machine  shops,  and  the  inability  of  the 
Messrs.  Niles  &  Co.  to  repair  more  than  one  engine  at  a  time, 
and  there  being  no  other  place  that  we  could  get  work  done. 
For  the  same  reasons,  and  which  are  more  fully  explained  under 
head  of  “  Machine  Shops,”  the  master  machinist  has  been  un¬ 
able  to  improve  materially  the  condition  of  the  engines. 

Six  first  class  freight  engines  are  required  in  addition  to 
those  named  in  table.  Four  of  them  should  have  been  on  the 
road  during  the  last  six  months  ;  and  until  they  are  provided, 
the  locomotive  power  will  not  only  be  totally  inadequate,  but 
worked  so  closely,  that  it  will  be  difficult  to  keep  these  engines 
in  fair  order.  The  six  engines  will  cost  $62,000. 

The  four  second  class  freight  engines  are  only  freight  in  name, 
and  wfiththe  yard  engine  at  Zanesville,  are  required  for  passen¬ 
ger,  construction  and  wood  trains.  These  engines  are  necessary 
for  the  maintenance  of  the  powder  in  those  particular  depart¬ 
ments  and  leave  the  freight  service  unprovided  excepting  by 
the  three  engines  above  named. 


CARS. 

The  Company  own  8  first  class  passenger,  2  second  class, 
and  4  baggage  cars.  The  number  of  other  cars,  originally  pur¬ 
chased,  were  100  house,  30  box  stock,  76  platform,  (all  of  which 
were  eight  wheeled) ;  also,  80  four-wheeled  gravel,  26  hand 
and  20  small  truck  cars  for  Noadmaster’s  Department.  Of  t'lese, 
2  box,  2  stock  and  3  platform  cars  are  missing,  and  with  the  1 


12 


stock  and  2  platform  cars  destroyed  on  our  own  road  by  fire, 
during  the  last  summer,  reduces  the  original  number  of  eight 
wheeled  cars  from  206  to  1 96,  now  in  possession  of  the  Com¬ 
pany.  Thirty  of  the  gravel  cars  have  been  broken  up,  and  the 
wheels  and  axles  used  in  some  new  coal  cars  recently  contract¬ 
ed  for.  All  the  cars  were  found  to  be  in  a  dilapidated  condi¬ 
tion.  The  estimated  cost  for  putting  them  in  order  on  1st  of 
September  last  was  $11,800,  besides  the  cost  of  400  new 
wheels. 

Within  the  last  ninety  days,  I  contracted  for  25  coal-cars,  20 
box-cars  and  4  hand  cars.  Of  these,  T>  coal-cars,  5  box-cars 
and  all  the  hand-cars  have  been  delivered  and  are  now  on  the 
road. 

The  axles  and  wheels  on  all  the  passenger  and  baggage  cars 
should  be  replaced  with  new  ones. 

There  should  be  added  to  the  present  stock  during  this  year, 
at  least  100  box,  (freight  and  stock)  and  84  platform  cars ;  and 
should  the  Little  Miami  and  Central  Ohio  Company  continue 
not  to  equalize,  at  all  seasons,  the  mileage  of  our  cars  on  their 
road,  with  an  equal  amount  of  mileage  of  their  cars  on  our  road, 
the  number  must  be  increased  or  the  trade  suffer,  as  most  of 
our  business  is  destined  to  or  from  Cincinnati  orBellaire.  Thus 
far  we  have  been  compelled  to  furnish  the  cars  for  nearly  the 
entire  business  passing  to  and  from  the  former  place  to  points 
on  our  road,  and  much  the  larger  portion  for  the  business  to  and 
from  Bellaire.  To  the  Wilmington  Company  this  is  a  serious 
matter,  owing  to  her  crippled  finances,  and  to  the  fact  that  the 
moneyed  rate  for  adjusting  car  mileage  is  no  compensation.  The 
condition  of  the  Central  road  being  somewhat  similar  to  our 
own,  is  an  excuse  for  them  ;  but  I  know  no  valid  reason  why  the 
other  Company  did  not  and  cannot  reciprocate. 

Tne  cost  of  the  184  cars  will  be  about  $114,000. 

MATERIALS. 

The  amount  of  materials  of  all  kinds  for  repairs  is  very  limit¬ 
ed,  probably  not  exceeding  in  value  what  is  consumed  in  thirty 
days.  The  road  is  also  bare  of  fuel,  and  requires  constant  pur¬ 
chases  to  be  made  to  maintain  the  supply. 


13 


ACCOUNT  BOOKS. 

The  accounts  of  the  Company  not  having  been  kept  under 
proper  heads  for  railroad  purposes,  the  erroneous  distribution  of 
the  various  items  of  which  they  are  composed,  with  the  inaccu¬ 
racies  that  pervade  them,  will  account  for  any  unusual  features 
or  discrepancies  that  may  appear.  By  way  of  extenuation,  1 
will  here  state,  that  I  have  discovered  nothing  to  lead  me  to 
question  their  integrity.  On  the  1st  of  November  a  new  set  of 
books  were  opened  and  the  old  ones  closed,  excepting  for  busi¬ 
ness  pertaining  to  the  perfecting  of  all  old  matters  appearing  on 
their  face. 


GENERAL  ACCOUNT. 

Balance  Sheet ,  as  per  old  Boohs ,  November  1  st.,  1856. 


Capital  stock .  $1,761,149  16 

1st  mortgage  bonds,  1,300,000  00 


2d  “  “  532,000  00 

3d  “  “  104,000  00 

Income  “  305,500 

Bills  payable .  345,932  20 

L.M.,  C.  ck  X.  R.R.Co.  11,394  82 

Other  Railroads .  1,939  73 

Profit  and  loss .  740  07 

Due  individuals .  63,455  60 

Trans,  receipts .  398,173  61 


$4,824,285  19 


Right  of  way . . 

$79,696 

19 

Real  estate . 

25,985 

22 

Fencing . 

6,069 

25 

Construction . 

2,012,003 

36 

Bridges . . 

60,300 

37 

Iron,  spikes  &  chairs 

733,814 

26 

Machinery  and  cars, 

326,732 

33 

Depots . 

25,472 

88 

Machine  shop. .... 

19,090 

13 

Telegraph . 

6,282 

50 

Engineering . 

51,816 

18 

Loss  on  bonds&stock, 

647,198 

12 

Coupon  &  other  int., 

402,527 

49 

Commissions . 

22,368 

70 

Contingent  expense, 

13,’.  59 

48 

Transportation  “ 

330,904 

19 

Bills  receivable .... 

2,052 

10 

Individual  acct.  <fcc., 

45,500 

49 

Nominal  “ 

12,712 

05 

$4,824,285 

1 ) 

14 


REVENUE. 

The  first  earnings  were  made  in  August,  1853  ;  the  gross  re¬ 
ceipts  for  that  and  the  subsequent  months  of  the  year  were 
$10,839  00  or  $2,167  80  per  month  : 


For  1854, 


January,  eai 

•nings 

gross,  $5,756 

40 

July,  earnings 

gross, 

$6,704 

28 

February, 

tt 

ti 

6,076 

90 

August,  “ 

tt 

7,893 

84 

March, 

ti 

it 

4,928 

36 

Sept.,  “ 

it 

9,160 

16 

April, 

tt 

tt 

8,386 

14 

Oct.,  “ 

ii 

9,824 

13 

May, 

ii 

tt 

7,370 

62 

Nov.,  “ 

tt 

9,732 

19 

June, 

(( 

44 

Ss, 

7,560 

90 

Dec.,  “ 

it 

12,229 

96 

For  the  6  mos., 

$40,079 

32 

For  the  6 

mos., 

$55,544 

56 

Or  per 

mo., 

$6,679 

88 

Or  per  mo 

•» 

$9,257 

44 

For  1855, 

January,  eai 

•nings 

gross, 

$9,513 

89 

July,  earnings 

gross, 

$8,106 

69 

February, 

44 

44 

6,286 

62 

Aug ,  “ 

tt 

9,544 

48 

March, 

u 

ti 

8,210 

55 

Sept.,  “ 

ti 

9,690 

15 

April, 

u 

it 

9,141 

99 

Oct.,  “ 

it 

9,999 

72 

May, 

u 

<t 

7,941 

83 

Nov.,  “ 

ii 

11,105 

87 

June, 

i. 

tt 

7,614 

72 

Dec.,  “ 

ii 

18,137 

94 

For  the 

6  mos., 

$48,709 

60 

For  the  6 

mo., 

$66,584 

85 

Or  per 

mo., 

$8,118 

40 

Or  per  me 

$11,197 

47 

For  1856, 

January,  earnings 

gross, 

$14,426 

07 

July,  earnings 

gross, 

$19,320 

60 

February, 

44 

44 

12,499 

95 

Aug., 

tt 

20,703 

64 

March, 

44 

44 

17,090 

12 

Sept.,  “ 

44 

19,790 

27 

April, 

ii 

44 

19,252 

95 

Oct.,  Pas’ngrs,  $8,51 1  96 

Exp.  &  mail, 

1,138  05 

Freight,  1 

2,886  53-22,53 6 

54 

May, 

it 

tt 

15,415 

01 

Nov.,  Pas’ngrs, 

6,368  1 

1 

Exp.  &  mail, 

1,042  76 

Freight,  1 

1,934  6 

5-19,345 

52 

June, 

tt 

44 

15,823 

14 

Dec.,  Pas’ngrs, 

6,970  48 

Ex.  &  mail, 

1,192  60 

Freight,  1 

7,125  07-25,288 

15 

For  6 

mos., 

$94,507 

24 

For  6  mos 

•» 

$126,984 

72 

Or  per 

mo., 

$15,751 

20 

Or  per  mo 

$20,582 

12 

Making  an  aggregate  earning  for  the  twenty-nine  months  of  $443,249  29. 


15 


After  closely  observing  the  trade  of  this  road,  we  suppose  the 
earnings  for  the  last  six  months  would  have  averaged  not  less 
than  $25,000  per  month,  if  the  Company  had  been  supplied 
with  a  sufficiency  of  machinery  and  cars,  and  had  these  been  in 
order  ;  and  for  the  first  half  of  the  present  year  would  not  have 
been  far  from  $35,000.  This  latter  earning  will,  however,  not 
be  made,  owing  to  the  fact,  that  the  inability  of  the  Company 
to  carry  the  freights  away  promptly  heretofore,  deterred  ship¬ 
pers  from  abandoning  their  former  channels  and  means  of 
transport,  until  a  certainty  could  be  placed  in  the  Company’s 
ability  to  meet  their  wants. 


EXPENSE  OF  OPERATING. 

The  books  show  the  expense  of  operating  the  road  from  July, 
1853,  to  July,  1856,  twenty-three  months,  to  be  $245,522  68, 
The  following  is  the  expense,  as  near  as  can  be  ascertained  for 
the  last  half  of  this  year : 


July . 

..  $11,003 

79 

August . . 

..  12,533 

88 

September . 

12,909 

21 

October . 

..  13,679 

89 

November . 

..  18,312 

62* 

December,  estimated... . 

19,500 

02f 

Or  total  per  6  mo .... 

. .  $87,999 

41 

Or  per  mo, . 

. .  $14,666 

56 

It  seems  necessary  also  here  to  say,  that  on  taking  control  of 
the  road,  its  credit  was  so  low  that  materials,  fuel,  &c.,  could 
not  be  purchased  excepting  for  cash,  or  on  individual  credit - 
there  being  but  a  scant  supply  of  the  former,  I  was  compelled 


*  During  this  month,  the  Hocking  engine  was  paid  for,  amounting  to  $2,000,  and 
other  extraordinary  expenses  incurred,  amounting  to  about  $1,500. 

f  In  December,  the  Sciota  engine  was  rebuilt,  at  an  expense  of  $2,600,  beside# 
other  large  extraordinar  expenditures  made. 


16 


to  avoid  ail  expenditures  possible,  and  had  to  discontinue  in  a 
measure  the  purchase  of  wood,  or  avail  myself  of  credit  by  in- 
dividually  becoming  responsible  in  part,  and  thus  getting  from 
three  to  four  months’  credit  for  the  Company,  which  threw  the 
payment  of  part  of  the  expenses  for  July,  August  and  Septem¬ 
ber  into  the  latter  months. 

I  should  judge  the  actual  working  expenses  to  be  about 
$16,000  per  month,  with  rolling  stock  in  good  order,  and  will 
augment  as  the  business  increases,  but  not  proportionately.  I 
should  say  when  the  gross  earnings  reach  $40,000  per  month, 
the  running  expenses  will  not  exceed  $20,000.  As  the  earnings 
increase  above  the  latter  sum,  there  will,  if  prudently  managed, 
be  a  reduction  of  per  centage  of  expense  of  operating,  to  as  low 
as  4-0  per  cent,  of  gross  earnings — the  road  being  peculiarly 
adapted  for  an  economical  working. 

The  gross  operating  expenses  thus  far  (estimating  December), 
sum  up  $336,522  09,  and  show  a  profit  of  $106,727  20.  This 
sum  is  purely  nominal,  and  is  fully  offset  by  the  deterrioration 
of  the  perishable  property  of  the  Company. 

OTHER  PA.PEES. 

What  I  have  said  in  reference  to  the  account  books,  will  al¬ 
so  apply  to  the  other  papers  of  the  Company.  The  engineers’ 
papers  are  nearly  all  missing ;  those  that  are  left  being  appa¬ 
rently  of  the  least  value.  In  the  General  Office  Department, 
it  does  not  appear  to  have  been  the  custom  to  preserve  the  let¬ 
ters  received,  or  to  have  kept  copies  of  letters  sent.  There 
were  but  few  papers  in  the  office,  and  those  that  were  there 
were  so  filed  that  it  would  have  been  better,  probably,  had 
they  been  promiscuously  thrown  together.  I  cannot  better  il¬ 
lustrate  the  condition  of  the  papers  than  by  saying  that  up  to 
this  time  I  have  failed  to  discover  any  of  the  reports  of  the  of¬ 
ficers  of  the  Company,  exceptiug  the  printed  report  of  1854  ; 
hence  I  have  been  compelled  to  get  all  my  information  thus 
far  from  other  sources  than  the  Company’s  papers.  The  conse¬ 
quence  is,  no  doubt,  that  there  are  valuable  papers  missing, 
and  expense  will  be  incurred  for  want  of  them. 

The  manner  of  keeping  and  settling  accounts  with  agents 


was  very  defective,  and  left  room  for  fraud  to  be  practised  by 
them,  if  so  disposed.  We  have  already  discovered  several  er¬ 
rors  in  their  favor,  a  portion  of  which  we  have  since  collected. 

EMPLOYEES. 

Early  in  August,  I  discovered  that  the  earnings  of  the  road 
had  been  largely  anticipated,  and  that  the  employees  were  in  a 
state  bordering  on  insubordination,  the  result,  in  part,  of  the 
Company  being  four  months  in  arrears  to  them  for  services. 
About  the  1st  of  August,  the  men  struck  for  their  back  pay, 
and,  there  being  but  little  money  in  the  treasury,  compelled 
me  to  supply  their  demands  out  of  my  private  funds.  Near 
the  close  of  the  same  month,  a  similar  feeling  was  manifested, 
and  one  of  the  passenger  trains  detained.  In  meeting  this  lat¬ 
ter  demand,  all  cause  for  further  difficulty  was  removed,  and 
the  control  of  the  road  effectualy  restored  to  the  Company. 

CONDITION  OF  THE  KOAD  IN  AUGUST. 

On  examination  of  the  bridges,  they  were  found  to  require 
heavy  and  immediate  repairs.  Several  of  their  abutments  were 
partially  undermined,  and  more  or  less  of  the  floor-beams  of 
these  superstructures  broken.  The  track  was  in  a  bad  condi¬ 
tion,  being  full  of  sunken  joints  ;  ditches  stopped  up  ;  switches 
without  locks,  and  the  main  track  for  miles  overgrown  with 
grass,  so  as  seriously  to  impair  the  effectiveness  of  the  loco¬ 
motives. 

The  following  statement  shows  the  amount  of  bonds  created 
under  the  several  mortgages  and  resolutions  of  the  Company 
the  number  sold,  hypothecated,  or  in  the  hands  of  agents  : 

CLASS.  AMOUNT. 

1st  mortgage,  dated  April  15,  1852. 

Sold, . $1,300,000  00 

2d  mortgage,  dated  Feb.  18,  1854. 

Sold,  .  .  .  $532,000  00 

In  hands  of  agents,  .  26,000  00 

Hypothecated,  .  25,000  00 

Unaccounted  for,  .  17,000  00  600,000  00 


2 


18 


3d  mortgage. 

Sold,  .  .  .  $104,000  00 

Trust  bonds,  “Tres,”  100,000  00 
Hypothecated,  .  896,000  00  $1,100,000  00 

Income  Bonds. 

Sold,  .  .  .  305,500  00 

J.  Badebaugh,  Tres.,  150,500  00 
<£  not  filled  up,  204,000  00 
In  bands  of  Agents,  5,000  00 
Hypothecated,  .  .  535,000  00  1,200,000  00 

Total  amount  authorized,  ....  $4,200,000  00 


The  capital,  representing  the  entire  property  of  the  corpora¬ 
tion,  is  made  up  of  the  following  items  : 


By  1st  mortgage  bonds,  .... 

“  2d  “  “ 

3d  «  “ . 

“  income,  “ 

“  bills  payable,  “ . 

“  amount  due  railroad,  as  per  books,  . 

“  “  “  individuals,  “ 

“  claims  on  file  not  yet  adjusted  or  recog¬ 
nised,  estimated  at  . 

“  claims  for  cattle  killed,  .  do.  do. 

“  capital  stock,  . 

“  interest  due  on  capital  stock,  estimated  at 
“  coupon  interest  past  due,  including  the  in¬ 
terest  on  Clinton  Co.  bonds,  estimated  at 
“  interest  on  bills,  &c.,  past  due,  do.  do. 


$1,300,000 

532,000 

104,000 

305.500 
345,932 

13,334 

63,455 

15,000 

7,500 

1,761,149 

289.500 

120,000 

25,000 


00 

00- 

00 

00 

20 

55 

60 

00 

00 

16 

00 

00 

00 


$4,882,371  51 

To  which  is  to  be  added  the  following  sums, 
before  the  132  miles  of  road  may  be  said  to  be 
finished,  and  the  capital  account  of  the  Company 
closed,  should  it  from  any  cause  not  be  com¬ 
pleted  into  the  city  of  Cincinnati,  according  to 
the  original  intention  of  its  charter  and  pro¬ 
jectors  : — 


19 


For  grading,  .... 

$5,000 

u 

culverting  and  bridging, 

24,500 

u 

ditching  and  sluices, 

5,000 

u 

trestle  work, 

4,000 

« 

ballast,  .... 

31,200 

c< 

three  miles  siding,  . 

22,000 

u 

unsettled  rights  of  way,  esti¬ 

mated  at  ... 

15,000 

u 

fencing,  .... 

45,000 

a 

buildings,  .... 

10,000 

M 

wood  sheds,  .... 

12,000 

« 

machine  shops  and  engine  houses, 

10,000 

« 

telegraph,  .... 

6,000 

U 

locomotives,  .... 

80,000 

u 

cars  for  coal  and  freight, 

120,000 

a 

real  estate,  .... 

15,000 

a 

2d  class  and  baggage  cars, 

7,200 

u 

eight  passenger  cars, 

16,000 

u 

sundries,  .... 

10,000 

$437,900  00 


Or  per  mile  $40,305,  or  for  whole  132  miles,  $5,320,271  51 


Of  that  sum  there  will  be  repre¬ 
sented  by  stock,  .  .  .$2,050,649  16 

Do.  bonds  and  debts,  .  .  3,269,622  35 


Rating  the  interest  on  entire  indebtedness,  i.  e .,  on  $3,269,622 
35,  at  seven  per  cent.,  makes  the  sum  of  $228, 873  56.  And 
estimating  the  cost  of  working,  at  45  per  cent,  of  the  gross 
receipts,  will  require  an  annual  earning  of  $416,132  68,  or  per 
month  of  $34,677  60.  ( See  Page  15.) 

GENERAL  REMARKS. 

Having  stated  the  facts  that  seem  necessary  to  inform  the 
reader  of  the  actual  condition  of  the  road,  its  machinery  and 
finances,  I  shall,  as  briefly  as  possible,  communicate  the  difficul¬ 
ties  with  which  the  Company  has  had  to  contend,  and  which 


20 


may  continue  to  exist, — the  immediate  wants,  and  future  neces¬ 
sities  of  the  road,  as  well  as  the  prospect  of  its  remunerating 
those  who  are  now  pecuniarily  interested  in  it,  or  may  here¬ 
after  become  so — with  such  other  facts,  or  opinions,  as  may  seem 
necessary  for  a  full  understanding  of  the  present  condition  and 
future  prospects  of  the  Company. 

On  referring  to  the  annexed  map  of  Ohio,  it  will  be  seen 
that  the  geographical  position  of  the  C.  W.  &  Z.  R.  R.  is  such 
as  to  command  a  large  share  of  the  trade  and  travel  passing 
between  the  Atlantic  cities  and  the  fertile  lands  of  the  Western 
and  Southwestern  States — that  the  completed  section  extends 
nearly  across  the  State  ;  and  that  its  termini  are  at  intermediate 
points ,  on  two  other  great  railroad  lines, — that  on  the  Little 
Miami  road  being  at  the  town  of  Morrow,  and  the  other  at 
the  city  of  Zanesville,  in  the  Central  Ohio  Railroad.  Thus 
situated,  by  far  the  larger  portion  of  her  trade  is  dependent 
upon  one  or  both  of  those  roads  for  transit  to  and  from  the 
several  markets  of  supply  and  demand.  Equally  dependent 
on  those  roads  are  her  tariff  and  time  tables ,  other  than  those 
of  a  strict  local  character.  Also  upon  them  devolves  the  regu - 
lations  for  running  her  ears — the  loading  and  unloading  of 
the  same — the  cheeking  of  baggage — the  receiving  and  receipting 
for  freights ,  as  well  as  the  selling  of  more  or  less  of  her  tickets , 
and  the  imparting  information  to  shippers  and  passengers.  In 
these  several  matters  of  detail  are  concentrated  nearly  all  the 
essential  poivers  to  secure  and  control  trade  j  therefore  the 
C.  W.  &  Z.  R.  R.  Co.’s  through  business  is  materially  affected 
by  their  acts.  The  same  may  be  said  of  a  large  portion  of  the 
local  trade  also. 

Again,  those  two  roads  form  a  continuous  road  between 
Morrow  and  Zanesville  ( via  Columbus ),  and  their  interests  are 
therefore  adverse. 

To  these  several  facts  is  attributable  a  portion  of  the  diffi¬ 
culties  attending  the  practical  working  of  the  road,  and  will,  to 
a  greater  or  less  extent,  influence  the'future  operations  ;  and  in 
them,  also,  lies  the  germ  of  misunderstandings.  It  is,  there¬ 
fore,  barely  possible  to  suppose  that  any  policy  can  be  pursued 
that  will  satisfy  the  demands  of  one  road,  without  exciting  the 
jealousies  of  the  others,  and  that  nothmg  short  of  absolute  con - 


21 


solidation  of  these  three  roads,  or  the  extension  of  the  C.  W.  & 
Z.  road  mto  the  city  of  Cincinnati ,  on  a  line  of  its  own,  accord¬ 
ing  to  the  intention  of  its  projectors  and  charter ,  will  secure 
positive  remuneration  to  the  capital  now  invested  in,  and  re¬ 
quired  to  complete  it. 

As  consolidation  involves  the  consent  of  many  persons,  of 
varied  interests  and  views,  it  may  be  said  that,  if  practicable, 
it  could  not  be  brought  about  at  this  time,  or  in  time  to  avail 
the  C.  W.  &  Z.  Co.,  and  it  is  therefore  out  of  the  question.  The 
latter  course  (completing  the  road  through  to  Cincinnati)  is  the 
alternative,  and  at  the  same  time  developes  a  local  trade  of  im¬ 
mediate  and  permanent  value,  and  will  not  cost  as  much,  it  is 
believed,  all  things  considered,  as  the  necessary  accommoda¬ 
tions  for  the  business,  in  a  proper  and  essential  manner,  by  the 
Little  Miami  Company.  The  Board  of  Directors  have  therefore 
contracted  with  the  Dayton  and  Cincinnati  (The  Tunnel)  Com¬ 
pany  for  the  exclusive  use  of  the  undivided  three-fifth  interest 
in  that  road,  from  Sharon  to  Broadway,  in  Cincinnati,  includ¬ 
ing  a  similar  interest  in  15  acres  of  depot  ground. 

The  three-fifth  interest  thus  secured  will  cost  $1,500,000,  in¬ 
cluding  interest ;  to  that  sum  is  to  be  added  $493,700,  the  cost 
of  the  nineteen  miles  between  Morrow  and  Sharon,  to  be  con¬ 
structed  by  the  C.  W.  &  Z.  Co.  These  amounts  together, 
show  the  entire  cost  of  the  extension  into  Cincinnati  to  the 
latter  Company. 

The  alignment  of  this  section  of  the  road  is  fully  equal  to  that 
of  the  section  east  of  Morrow,  and  as  to  grades  superior — the 
maximum  being  at  the  rate  of  47  feet  per  mile,  and  occurs  only 
at  one  point  north  of  Sharon.  The  rest  of  the  grades  are  below 
40  feet. 

The  advantages  of  the  extension  are  many  and  unequalled. 

1st.  It  penetrates  directly  into  the  city — the  depot  abutting 
on  Broadway,  near  Court  street — and  thus  will  be  able  to  dis¬ 
charge  and  receive  its  freights  and  passengers  almost  at  the 
centre  of  busine-s,  and  in  a  pleasant  part  of  the  city.  Within 
an  average  distance  of  800  feet  of  the  end  of  the  depot  every 
winter  is  the  product  of  400,000  hogs  prepared  for  market. 
The  principal  basin  of  the  Miami  Canal  terminates  within  150 
feet  of  the  end  of  the  building  and  at  an  expense  of  $6,000  ;  a 


22 


elip  could  be  constructed  into  the  depot,  and  boats  unloaded  or 
loaded  alongside  of  the  cars.  This  canal  also  brings  to  Cin¬ 
cinnati  an  amount  of  hog  product  but  little  inferior  to  that  pre¬ 
pared  in  the  city,  besides  large  quantities  of  flour,  whiskey  and 
other  products.  Thus  in  the  immediate  vicinity  of  the  depot 
are  accumulated  immense  masses  of  produce,  nearly  all  of 
■which  is  destined  to  foreign  market.  The  saving  on  the  dray- 
age  alone ,  in  Cincinnati,  on  these  products  shipped  at  this  de¬ 
pot,  will  equal  33  cents  per  ton  on  that  incurred  if  shipped  at 
the  Little  Miami  depot,  the  next  most  favorably  situated. 

By  reference  to  the  annexed  map  of  Cincinnati,  this  advant¬ 
age  will  readily  be  realized.  Within  the  smaller  circle  of  half 
a  mile  in  diameter  is  the  great  heart  of  Cincinnati,  where  cen¬ 
tres  and  is  transacted  nearly  the  entire  commercial  and  finan¬ 
cial  business  of  the  emporium  of  the  Mississippi  basin.  The 
depot  of  the  Tunnel  Company  is  within  the  circle  described, 
with  a  radius  of  half  a  mile — that  of  the  Little  Miami  within 
the  arc  of  three-quarters  of  a  mile,  and  that  of  the  Hamilton 
and  Dayton  Road  within  that  of  one  mile  and  a  quarter. 

The  depot  grounds  are  so  situated,  that  not  a  street  or  alley, 
or  other  public  ground,  will  be  touched  by  the  works  of  the  road, 
consequently  no  municipal  control  can  extend  to  the  regulation 
of  the  speed  of  its  trains.  This  feature,  in  addition  to  the  fact 
that  for  four  miles  out  there  is  not  a  road  crossing  on  a  level 
with  its  rails,  will  enable  the  trains  to  be  worked  at  any  speed 
desired.  This  peculiarity,  in  connection  with  the  saving  in  dis¬ 
tance  between  Cincinnati  and  Morrow  over  the  Little  Miami 
Road  of  five  miles  of  railroad,  and  from  a  quarter  to  half  a  mile 
of  city  omnibusing,  will  enable  express  trains,  running  at  30 
miles  an  hour,  to  be  in  Morrow  by  the  time  those  on  the  other 
road  are  fairly  free  of  municipal  control ;  in  other  words,  be  a 
saving  of  full  one  hour’s  time  whenever  the  municipal  regula¬ 
tions  are  fully  enforced. 

3d.  The  road  at  Sharon,  being  in  the  valley  of  Mill  Creek  ^ 
allows  by  a  line  of  easy  construction  two  miles  in  length,  a 
connection  to  be  had  not  only  with  the  Miami  Canal,  but  also 
with  the  Hamilton  and  Dayton  Railroad,  near  Glendale, 
and  through  that  road  with  the  several  railroads  passing  into 


23 


Indiana  from  Hamilton.  This  will  be  better  understood  by 
referring  to  the  local  map  of  southwestern  Ohio,  accompanying 
this  report.  Through  these  two  connections  the  supplying  of 
coal  to  the  great  Miami  valley  and  eastern  Indiana,  will  be 
secured  to  our  road.  Again,  produce  coming  by  these  same 
avenues,  destined  for  an  eastern  market,  would  be  transferred 
to  our  cars,  at  the  points  of  junction,  and  thus  the  expense  of 
transportation  to,  and  cartage  through  the  city,  avoided.  In 
fact,  our  road  would  monopolize  that  class  of  trade,  as  well  as 
the  merchandise  and  wares  coming  from  the  east,  in  exchange 
for  these  products. 

4th.  These  depot  grounds  are  so  capacious,  that  about  five 
acres  can  be  spared  for  coal  purposes,  and  so  situated  that 
the  floor  of  the  yard  can  be  fixed  at  a  level  35  feet  below 
the  track,  and  thus  afford  all  the  facilities  for  storage  necessary 
to  enable  the  Railroad  Company  to  do  the  business  at  a  rate 
which  ensures  her  a  business,  the  value  of  which  is  set  forth  in 
a  subsequent  article  on  the  coal  trade. 

With  this  extension  completed,  the  Company  will  have  a 
railway  1  62  miles  long,  the  cost  of  which,  with  the  coal  equip¬ 
ment,  will  not  exceed  eight  millions  of  dollars.  Three  millions 
of  that  sum  will  be  represented  by  stock,  and  five  millions  by 
bonds,  (assuming  that  the  hypothecated  bonds  will  be  restored 
to  the  Company’s  control).  The  amount  required  to  pay  the 
interest  on  the  bonded  debt,  and  a  similur  interest  of  7  per 
cent,  to  the  stockholders,  will  require  an  annual  earning  of 
$1,120,000,  estimating  working  expenses  at  50  per  cent. 

It  seems  necessary  for  me  here  to  remark,  that  the  road  passes 
for  its  entire  distance,  over  a  country  of  extraordinary  fertility, 
under  a  high  state  of  cultivation,  free  from  miasmas  or  other 
deleterious  atmosphere,  antagonistic  to  health.  Although 
partially  through  a  grazing  country,  yet  large  quantities  of 
surplus  cereals  are  grown  for  foreign  market,  and  generally  the 
country  will  afford  the  usual  proportion  of  freights  and  passen¬ 
gers,  and  the  thirty  miles  next  the  city  an  unusually  large  pro¬ 
portion  of  the  latter.  Already  are  springing  up  along  the  line 
buildings  for  manufacturing  purposes,  and  the  trade  rapidly 
conforming  to  this  new  channel  to  market. 


24 


THE  COAL  TRADE. 

The  eastern  forty  miles  of  the  road  lies  in  a  bituminous  coal 
field.  A  number  of  mines  in  Perry  county  are  now  being 
worked,  and  the  coal  from  the  best  of  them  has  been  tried  by 
manufacturers  and  families,  and  pronounced  for  most  purposes 
to  rank  second  only  to  the  best  Younghiogeny.  The  average 
distance  of  these  mines  will  be  about  140  miles  from  the  city. 

Owing  to  the  insufficiency  of  cars  and  engines,  this  trade  has 
not  been  encouraged,  but  has  had  to  take  its  chance  with  other 
articles  of  freight;  consequently  the  many  manufacturing  es¬ 
tablishments  and  families,  situated  along  the  Cincinnati,  Wil¬ 
mington  and  Zanesville  and  Little  Miami  roads,  have  been  only 
partially  induced  to  change  from  wood,  their  present  fuel,  to 
coal.  The  present  local  demand  from  distillers  and  mills  is 
fully  equal  to  five  hundred  thousand  bushels  per  year,  or  suffi¬ 
cient  to  keep  one  of  our  best  freight  engines  and  ninety  cars, 
busy  for  six  months  each  year.  Such  being  the  immediate 
wants  of  a  country  unaccustomed  to  coal,  justifies  me  in  assert¬ 
ing,  that  the  local  demands  for  coal  will,  within  six  months  after 
the  Company  is  able  to  accommodate  it,  be  sufficient  to  tax 
the  daily  capacity  of  a  freight  engine,  for  the  first  year,  and 
within  six  years  thereafter  increase  so  that  the  local  revenue 
from  that  article  alone  will  amount  to  the  interest  on  the  present 
issue  of  first  and  second  mortgage  bonds  of  the  Company. 

To  the  local  demand  must  be  added  a  fair  proportion  of  that 
required  in  Cincinnati,  and  now  exclusively  obtained  by  the 
river  from  the  upper  Ohio.  The  past  year’s  consumption  in 
that  city7'  would  have  exceeded  twelve  millions  of  bushels  could 
it  have  been  had  at  a  cost  not  exceeding  12|  cents  per  bushel. 

The  amount  of  coal  annually  consumed  in  the  valley  of  the 
Ohio  is  so  great  and  so  rapidly  on  the  increase,  that  the  facili¬ 
ties  for  its  accommodation  and  transport  are  out-grown,  and 
there  periodically  occur,  and  will  continue  to  occur,  as  long  as  the 
river  alone  is  depended  upon,  those  extreme  fluctuations  in 
price  witnessed  during  the  last  six  years — the  price  at  times 
ranging  as  high  as  60  cents  per  bushel.  This  may  seem  strange 
(as  the  capacity  of  the  river  to  transport  during  half  the  year 
is  unlimited)  to  one  not  familiar  with  the  irregularity  and  limit- 


25 


ed  periods  during  which  it  is  navigable,  consequently  there  is 
occasioned  large  additional  expenses  for  storage,  either  at  the 
mines,  or  at  the  city,  where  rents  for  yards  are  exorbitant. 
Hence  the  necessity  for  resorting  to  other  channels  for  supply¬ 
ing  not  only  a  portion  of  the  present  wants  but  also  the  increas¬ 
ing  consumption.  In  fact,  I  feel  satisfied  that  the  future  pros¬ 
perity  and  continued  growth  of  the  city  directly  depends  upon  a 
certain  regular  supply  of  coal  at  rates  not  exceeding  12  cents. 

The  following  shows  the  population  of  the  city,  and  the  num¬ 
ber  of  bushels  of  coal  consumed  at  the  periods  stated  : 

Population.  Coal  Consumed. 


1835 .  . estimated  at  500,000  bushels. 

1840 .  46,338  census  do  do  do 

1850 .  115,436  do  do  do  4,500,000  do 

1854 .  ...  .actual  amount  8,158,000  do 


1855  estimated  185,000. .. .  do  do  10,350,000  do 

Applying  the  ratio  of  increase  thus  indicated  to  the  future, 
it  will  be  seen,  that  her  market  is,  and  will  be,  one  affording 
certain  and  reliable  demands. 

For  these  several  reasons,  and  the  fact  that  the  plateau  upon 
which  the  city  stands  is  fast  being  absorbed  by  factories  and 
commercial  buildings,  the  coal  yards  will  be  driven  to  more  re¬ 
mote  sections  of  the  city.  I  therefore  feel  justified  in  saying, 
that  when  the  Cincinnati,  Wilmington  and  Zanesville  Railroad 
is  completed  and  equiped  for  the  trade,  the  coal  received  annu¬ 
ally  from  the  river  will  decrease  materially  in  amount,  and  that 
at  least  4,000,000  bushels  would  be  transported  over  the  road 
during  the  first  twelve  months,  yielding  to  the  Company,  as 
compensation  for  its  carriage,  $300,000. 

The  bulky  character  of  coal,  and  the  special  facilities  requir¬ 
ed  to  enable  it  to  be  transported  a  distance  of  140  miles  and 
delivered  to  the  consumers  at  a  fixed  and  paying  rate,  in  con¬ 
nection  with  the  fact  that  the  practical  working  of  the  road  from 
Morrow  to  Zanesville  has  shown  the  insufficiency  of  the  Little 
Miami  entrance  into  the  city  to  accommodate  satisfactorily, 
even  if  that  corporation  was  so  disposed,  the  coal  trade  that  will 
be  necessary  to  the  wants  of  the  city,  secures  the  same  perpetu¬ 
ally  to  our  road. 


TABLE, 

Showing  the  Population,  the  Cash  Value  of  Farms,  the  Value  of  Farming  Lands,  Improvements  and  Machinery,  and  Num¬ 
ber  of  Acres  of  Improved  Land,  in  the  several  Counties  through  which  the  Roads  named  pass,  including  the  country  within 
a  radius  of  twelve  and  a  half  miles  around  their  termini,  as  per  the  United  States  Census  of  1850. 


26 


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27 


The  foregoing  table  shows  the  fact,  that  the  country  through 
which  the  Cincinnati,  Wilmington  and  Zanesville  Railroad 
passes,  bears  favorable  comparison  with  that  bordering  either 
of  the  other  roads,  and  that  it  will  certainly  afford  a  propor¬ 
tionate  local  traffic. 

From  repeated  analysis  of  the  earnings  of  roads  favorably 
situated  in  Ohio  and  Indiana,  I  am  satisfied  that  the  local 
revenue  of  a  road  under  fair  circumstances  is  not  far  from 
$$to°o  per  inhabitant  of  the  territory,  in  a  belt  of  country  12| 
miles  in  width  on  each  side  of  the  line,  and  around  its  termini. 
This  estimate  is  independent  of  any  revenue  from  minerals. 
Applying  the  rule  to  the  section  of  the  C.  W.  &  Z.  R.  R., 
between  Morrow  and  Zanesville,  131  miles  in  length,  and  esti¬ 
mating  the  population  in  the  several  counties  in  which  it  lies, 
in  185S,  at  210,000,  the  revenue  from  produce,  merchandise 


and  passengers,  would  be . $462,000 

From  coal  transportation,  ....  30,000 

For  through  business,  (10  per  cent,  on  local,)  .  46,200 


Gross  earning  for  1858,  ....  $538,200 


A  sum  sufficient  to  cover  working  expenses,  (45  per  cent.), 
the  interest  on  its  bonded  and  floating  debt,  and  leave  $60,000 
for  deterioration,  or  stockholders. 

The  estimate  for  through  business  is  purely  conjectural,  and 
may,  or  may  not,  be  realized.  (See  page  20  of  this  report.) 

Assuming  the  road  completed  into  the  city,  and  applying  the 
same  rule  of  estimate  for  local  business — and  the  estimate  here¬ 
tofore  explained  for  the  coal  transportation — with  a  fair  allow¬ 
ance,  say  20  per  cent,  on  local  business  for  through  traffic,  (a 
per  centage  which  would  be  beyond  all  doubt  realized ,)  the 
revenue  for  the  first  year  would  then  be  as  follows,  (the  popu¬ 
lation  being  estimated  at  433,483,  which  is  20  per  cent,  increase 
over  that  of  1850,  and  the  same  as  allowed  in  the  other  esti¬ 
mate)  : — 


28 


From  produce,  merchandise  and  passengers,  (local)  $953,662  60 
coal  delivered  in  city  and  Mill  Creek  valley,  300,000  00 

“  “  local, .  30,000  00 

Through  business, .  190,732  00 

Gross  earning, . $1,474,394  60 

A  sum  sufficient  to  pay  working  expenses,  (50*  per  cent.), 
and  7  per  cent,  on  the  bonded  debt  of  $5,000,000 — and  a  like 
interest  of  7  per  cent,  on  the  stock,  $3,000,000 — with  a  surplus 
fund  of  $177,197  30. 

To  allow  a  ready  comparison  with  the  other  leading  roads, 
not  dissimilarly  situated,  and  sharing  the  same  trade,  to  be 
made,  and  at  the  same  time  to  corroborate  the  foregoing  esti¬ 
mates,  by  applying  the  deduction  to  be  drawn  from  their  oper¬ 
ation  to  ours,  I  present  the  following  table,  which  shows  their 
cost  and  earnings  in  1855  : — 


Name  of  R.  R.  Co. 

Length 

Cost. 

Cost 

per  mile. 

Gross 

Earnings. 

Earnings 
per  mile. 

Clev.  Columbus  &  Cin. . 

Little  Miami . 

Columbus  &  Xenia,. . . 
Cin.  Hamn.  &  Dayton.. 
Ohio  &  Pennsylvania,.. 

Pennsylvania  . 

Baltimore  &  Ohio, . 

141 

84 

55 

61 

187 

256 

382 

$4,613,722 

3,800,000 

1,570,013 

2,987,757 

5,670,700 

18,483,489 

23,031,507 

$32,800 

45.200 
28,540 
48,900 
30,300 

72.200 
60,290 

$1,290,295 

678,120 

339,060 

471,888 

1,111,626 

3,533,333 

3,711,453 

i 

$9,100 

8,000 

6,160 

7,730 

5,940 

13,800 

9,980 

to 
a 
• »— « 
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3 

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Average . 

. 

$45,461 

$8,672  | 

o  . .  •••• 

Cin.  W.  &  Zanesville,. . 
Cin.  W.  Zanesville,  ) 
including  extension,  ) 

131 

162 

$5,400,000 

8,000,000 

$41,220 

49,380 

$538,200 

1,474,394 

$4,100 

9,100 

1 

Est. 

Do. 

The  country  and  trade  which  gives  vitality  and  support  to 
those  roads  is  identical  with  that  occupied  by  the  C.  W.  &  Z. 
R.  R.,  and  these  roads  in  return  are  necessary  to  its  further 
development.  Their  actual  earnings  in  1855  being  sufficient 
for  their  support,  certainly  in  1858  there  will  be  also  enough 
for  the  C.  W.  &  Z.  Road.  The  latter  completed  is  not  a  rival, 

*  It  will  be  perceived  that  I  have  used  a  larger  per  centage  for  working  ex¬ 
penses  in  this  case  than  in  the  other.  The  reasons  are  that  the  coal  transportation 
is  large,  and  the  price  for  its  carriage  low.  The  proportionate  working  expenses 
will  be  probably  increased. 


29 


but  an  auxiliary  to  them — a  necessity  to  the  country — the 
channel  through  which  Cincinnati  will  derive  the  material 
essential  to  her  continued  growth,  and  the  maintenance  of  her 
ascendancy  as  the  emporium  of  the  great  Mississippi  basin — * 
viz.,  cheap  fuel . 

I  believe  the  foregoing  sufficiently  illustrates  the  power  and 
advantages  that  this  road  wTill  have  when  completed,  and  jus¬ 
tifies  me  in  saying  that  I  know  of  no  road  that  promises  more 
certain  and  reliable  remuneration. 

The  actual  cash  required  by  the  Tunnel  Company  and  the 
C.  W.  &  Z.  Company  to  complete  the  extension,  is  as  follows: 

From  Broadway  to  Tunnel,  §  mile  road-bed,  $  30,000 
The  Tunnel,  2  do  do  678,375 

From  Tunnel  to  Sharon,  9-|  do  do  160,774 

From  Sharon  to  Morrow,  19  do  do  266,000 

Iron  bridge  across  Miami  at  Morrow,  .  .  .  35,000 

36  miles  of  main  and  side-track,  .  .  .  270,000 


36  do  ballast .  36,000 

62  do  fence .  24,800 


$1,500,949 

The  most  expensive,  and  by  far  largest  portion  of  the  right 
of  way,  has  been  obtained,  as  well  as  the  real  estate  for  depot 
purposes,  and  paid  for. 

The  estimate  is  ’known  to  be  in  the  aggregate  ample  ;  the 
character  of  the  work  having  been  fully  tested,  by  the  work 
already  done  and  paid  for,  amounting,  for  all  purposes,  to 
$650,000. 

To  meet  the  above  expenditure,  the  Tunnel  Company  have 
an  unexpended  stock  subscription,  which  is  now,  or  can  be, 
made  available  towards  construction  of  $200,000  ;  also,  yet  in 
their  possession,  $953,000  of  first  mortgage  bonds  (the  whole 
issue  being  $1,000,000,  of  which  $47,000  has  been  paid  out.) 
These  bonds  are  secured  by  a  first  mortgage  on  the  assets  of 
the  corporation,  among  which  is  real  estate,  estimated  to  be 
worth  $200,000,  and  the  several  sums  expended,  in  depot 
grounds  near  the  business  heart  of  Cincinnati,  in  rights  of  way, 
and  work  on  tunnel  and  its  immediate  vicinity,  about  $575,000, 


30 


all  of  which  has  been  paid  for.  The  interest  on  these  bonds  for 
the  first  two  and  a  half  years  is  to  be  paid  out  of  a  special  stock 
subscription  already  made,  amounting  to  $250,000,  an  unusual 
feature,  and  one  claiming  the  especial  attention  of  capitalists. 

The  C.  W.  &  Z.  Company  will  have  $1,000,000  of  first  mort¬ 
gage  bonds  on  the  19  miles  of  road  between  Sharon  and  Morrow, 
additionally  secured  by  a  second  mortgage  on  the  Tunnel  Road, 
from  Sharon  to  Cincinnati,  and  a  fourth  mortgage  on  the  pre¬ 
sent  131  mile  section  of  finished  line.  From  these  bonds  will 
be  realized  at  least  70  cents  on  the  dollar,  and  the  resources 
may  be  stated  as  follows  : 

ISlet  proceeds  of  $950,000  1st  mortgage,  Tunnel,  $665,000 
Do  do  do  $1,000,000  1st  mortgage,  19  miles,  700,000 

Total,  $1,365,000 

Leaving  only  $135,000  to  be  met  by  the  subscription  of 
$222,000  already  made. 

This  million  issue  of  the  C.  W.  &  Z.  Road  is  to  have  its  in¬ 
terest  secured  for  2|  years,  by  a  special  fund,  somewhat  similar 
to  that  of  the  Tunnel  Company. 

To  make  easy  the  financial  affairs  of  the  Company  during 
the  construction  of  the  extension,  and  to  restore  its  credit, — as 
well  as  to  secure  its  early  and  necessary  equipment,  and  enable 
its  business  to  be  conducted  to  the  satisfaction  of  the  officers  of 
the  railroad  and  to  the  community,  as  well  as  to  render  a  large 
amount  of  precarious  capital  certainly  productive  and  amply 
remunerative , — requires  that  there  shall  be  co-operation  of 
those  representing  the  various  securities  of  this  Company, 
proportionate  to  the  several  grades  of  the  same.  It  is  therefore 
suggested  that  the  interest  on  the  1st  mortgage  bonds  past  due, 
and  falling  due  May  1st,  be  funded  by  the  holders  taking  3d 
mortgage  bonds,  at  70  cents  on  the  dollar.  That  the  interest 
on  the  2d  mortgage  bonds  past  due,  and  falling  due  on  the  1st 
of  May  and  November  of  this  year,  and  in  May,  1858,  be  funded 
with  3d  mortgage  bonds,  at  same  rates.  That  the  interest  on 
the  3d  mortgage,  and  income  bonds,  which  have  been  regularly 
sold  by  the  Company,  be  funded  in  kind,  at  70  cents  on  the 
dollar,  for  six  semi-annual  times. 


31 


Such  action  would  result  in  an  immediate  restoration  of  the 
Company's  credit — give  a  permanent  market  value  to  its  se¬ 
curities,  and,  with  its  earnings,  enable  its  managers  to  perfect, 
the  road-bed  and  machinery,  and  supply  any  deficiency, — and, 
subsequently,  meet  the  interest  as  it  becomes  due. 

The  stockholders  are  expected,  at  the  annual  election  for 
Directors  in  March  next,  to  take  proper  action  in  this  matter ; 
and  it  is  hoped  that,  in  the  meantime,  the  bondholders  and 
other  creditors  will  prepare  to  co-operate  in  the  developing  this 
unquestionably  great  and  meritorious  work. 

Trusting  that  my  views  will  be  favorably  entertained, 

I  am  very  respectfully,  Ac., 

ERASMUS  GEST, 

Preset  ck  SujpH  C.  W.  dc  Z.  P.  P.  Co. 


* 


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